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HR Acuity's Ninth Annual Employee Relations Benchmark Study

On June 12, 2025, HR Acuity, a leader in employee relations (ER) software, released its Ninth Annual Employee Relations Benchmark Study, emphasizing the pressing need for organizations to adopt proactive and data-driven strategies to navigate rising workplace risks. With a sample from 284 organizations and covering over 8.7 million employees worldwide, the insights underscore how crucial it is for businesses to enhance their practices to ensure positive outcomes and improve employee experiences.

Rise in Workplace Misconduct Claims

The study highlights a worrying trend: misconduct claims, including discrimination, harassment, and retaliation, have reached an unprecedented level of 14.7 incidents per 1,000 employees in 2024. This marks the highest figure ever recorded in the study’s history. The report suggests that ongoing regulatory changes and heightened conflicts among employees necessitate a greater emphasis on trend reporting across various departments and locations. By doing so, organizations can better address and prevent future issues, thereby curbing the surge in claims.

Furthermore, the report raises alarming concerns about the investigation processes that many organizations employ. Despite the significant rise in claims, approximately 32% of organizations do not utilize a structured investigation procedure. This leaves them exposed to a range of risks, including legal, financial, and damage to their reputation. The findings emphasize a clear need for enhanced workplace investigation protocols to cultivate consistency and compliance in handling misconduct claims.

Data Blind Spots Hindering Organizational Strategy

A critical insight from the study points to the prevalence of data blind spots in many organizations. It was discovered that 68% of organizations lack tracking mechanisms for issues per case, which hampers their understanding of case complexity and the effectiveness of their processes. Additionally, nearly half of the organizations surveyed have no access to substantiation data, limiting their visibility into outcomes and employee trust.

An alarming statistic revealed that 70% of organizations do not track substantiation by issue type, making it difficult to pinpoint trends or manage issues proactively. This lack of insightful data can leave organizations vulnerable to risks and impede their decision-making processes.

The Role of AI in Employee Relations

Despite the evident need for enhanced productivity, the adoption of artificial intelligence (AI) in employee relations remains limited. Less than half (44%) of the organizations surveyed are currently utilizing AI for their employee relations processes. About a third of organizations are cautiously examining AI capabilities and piloting initiatives to improve their employee relations workflows. The report notes that organizations employing structured investigation processes are twice as likely to incorporate AI into their practices, emphasizing how foundational processes can facilitate effective and responsible AI implementation in this field.

Deb Muller, CEO and founder of HR Acuity, states, "Amidst the complexities of today’s workplace, exacerbated by rising misconduct claims and regulatory pressures, intuition alone is insufficient. Data and insights have become indispensable." This statement reinforces the call for organizations to embrace analytics powered by AI and to implement structured processes to not only protect their employees but also to maintain their reputations and instill confidence within their teams.

Harnessing Data for a Better Employee Experience

The Fourth Annual Employee Relations Benchmark Study underscores the necessity for organizations to move away from reactive practices. By leveraging data analytics, organizations can uncover patterns and trends that can inform better business strategies, consequently promoting a healthier work environment.

HR Acuity continues to lead in this domain, providing innovative software as a service (SaaS) solutions specifically tailored for employee relations and investigations management. Their solutions facilitate fair investigation processes aligned with industry best practices, harness forward-looking data analytics, and ultimately foster consistent and trustworthy experiences for all employees.

For organizations committed to enhancing their employee relations, the findings from HR Acuity's Ninth Annual Employee Relations Benchmark Study serve as a crucial resource for informed decision-making. It is vital for businesses to recognize these trends and to prioritize upgrading their systems and processes to navigate and mitigate the complex challenges ahead.